India cuts corporate taxes to counter slowing growth

NEW DELHI (AP) — The Indian government on Friday announced a slew of concessions aimed at boosting the economy that will reduce most corporate taxes for local companies to about 25% from 30%.

Finance Minister Nirmala Sitharaman said the lower tax rates will retroactively apply from April 1, the beginning of India's fiscal year.

Share prices surged, with the Sensex in Mumbai jumping more than 5% to its highest level since July.

India's economy, the world's 6th largest, was booming until recently but it has slowed in recent months, with growth in manufacturing dropping to 0.6% in the last quarter from 12% a year earlier.

Overall, the economy grew at an annual rate of 5% in the April-June quarter, its slowest annual pace in six years. Many economists believe Prime Minister Narendra Modi's signature economic policies are at least partly to blame.

A surprise demonetization in 2016 and a new goods and services tax have taken a dire toll on many businesses.